Danaher posts 80% profit growth, lifts targets

SAN FRANCISCO (MarketWatch) -- Danaher Corp. reported Thursday an 80% surge in third-quarter profit, thanks in part to tax benefits, as the company revised its 2007 earnings target higher.

The results come just days after the company
DHR, +0.06%
best known as the maker of Craftsman tools, made a bid to broaden its electronics-testing business via the acquisition of Tektronix.

Danaher's shares gained 10 cents to $81.50 in early trading.

The Washington, D.C.-based manufacturer posted earnings of $483.7 million, or $1.48 a share, for the latest quarter, up from $268.1 million, or 83 cents a share, a year earlier. The company says a lower tax rate and "discrete" tax matters added 5 cents a share to the bottom line.

Earnings from continuing operations came in at $335 million, or $1.03 a share, up from $264 million, or 82 cents a share, a year ago. Quarterly sales rose 13.5%, reaching $2.73 billion $2.41 billion.

The average estimates derived in a survey of analysts by Thomson Financial called for third-quarter earnings of 97 cents a share and sales of $2.71 billion.

"We are making significant progress in both our core businesses, which grew 5% in the quarter, as well as our recently acquired businesses, where growth and cost-savings initiatives continue to gain traction," CEO H. Lawrence Culp said in a statement.

"We believe our businesses and end markets remain healthy and our outlook for the remainder of 2007 continues to be positive," he added.

Culp said in a conference call that he expects earnings from continuing operations of $1.09 to $1.14 a share in the fourth quarter. Wall Street's looking for a profit of $1.11 a share.

Danaher also raised its full-year outlook to a range of $3.80 to $3.85 a share, compared to $3.74 to $3.82 a share previously. Analysts previously forecast a 2007 profit of $3.80 a share.

Danaher on Monday triggered a 34% surge in shares of Tektronix
TEK, -20.00%
the world's second-biggest maker of test and measuring equipment, as a result of their acquisition agreement, valued at $2.8 billion. See full story.

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